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  • FIRST POST
    • Anaida9999
    • By Anaida9999 16th May 18, 8:00 PM
    • 29Posts
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    Anaida9999
    Withdrawal from Sole Selling Rights Estate Agent contract
    • #1
    • 16th May 18, 8:00 PM
    Withdrawal from Sole Selling Rights Estate Agent contract 16th May 18 at 8:00 PM
    Hi,

    I have a contract with an Estate Agent with Sole Selling rights with a minimum period of 30 weeks, I still have about 20 weeks left.
    The Agent found me a buyer for the property and had the property valued at 137k having seen the valuation report. However they have something called a Performance fee and they seem to be only giving me 127k net and taking 10k out of the deal which seems way too much at 7% commission essentially. Other estates agents here in the midlands take about 3% from the sale price.

    As I am not happy with this I did not want to proceed so the estate agent sent me a text message saying I am welcome to sell it with another agent as I did not make a decision with accepting this amount. I said ok then I may go with another agent and then he sent me a text saying they will charge fees for this as withdrawing from the contract.

    Is he allowed to do this? Maybe the EA can charge for marketing costs I expect that is reasonable?

    Thanks in advance for any responses.
    Last edited by Anaida9999; 16-05-2018 at 8:04 PM.
Page 1
    • Bass_9
    • By Bass_9 16th May 18, 8:03 PM
    • 55 Posts
    • 51 Thanks
    Bass_9
    • #2
    • 16th May 18, 8:03 PM
    • #2
    • 16th May 18, 8:03 PM
    I know this isn't particularly helpful but why on earth did you sign up to this?

    When did you sign the contract with the EA?
    • Anaida9999
    • By Anaida9999 16th May 18, 8:11 PM
    • 29 Posts
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    Anaida9999
    • #3
    • 16th May 18, 8:11 PM
    • #3
    • 16th May 18, 8:11 PM
    back in Feb, this is the first time I have ever sold a house the EA seemed to have good reviews did not know they would try to hit me with such a big fee to sell the house. They dont actually say what the fee % is
    • G_M
    • By G_M 16th May 18, 8:11 PM
    • 44,096 Posts
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    G_M
    • #4
    • 16th May 18, 8:11 PM
    • #4
    • 16th May 18, 8:11 PM
    You signed a 30 week minimum contract?

    As for the 'Performance fee', we cannot see the contract you signed. What does it say?

    We can hardly advise you regarding "Is he allowed to do this" unless you tell us what you agreed to, can we?

    You also need to check whether he can charge you if

    * a buyer exchanges contracs, or
    * a buyer Completes, or
    * he introduces a 'willing and able buyer'
    Last edited by G_M; 16-05-2018 at 8:14 PM.
    • Mutton Geoff
    • By Mutton Geoff 16th May 18, 8:29 PM
    • 1,130 Posts
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    Mutton Geoff
    • #5
    • 16th May 18, 8:29 PM
    • #5
    • 16th May 18, 8:29 PM
    You signed a 30 week minimum contract?
    Originally posted by G_M

    And nice estate agents come onto this forum and wonder why their profession is universally despised.


    Good luck to the OP.


    Oh, and in my experience, agents have charged 1% plus VAT, not 3% for quite a few years now. Even 3% is too much.
    Last edited by Mutton Geoff; 17-05-2018 at 11:42 PM.
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    • Anaida9999
    • By Anaida9999 16th May 18, 10:14 PM
    • 29 Posts
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    Anaida9999
    • #6
    • 16th May 18, 10:14 PM
    • #6
    • 16th May 18, 10:14 PM
    not sure how to add contract link to the post, tried to post a url link to flickr but it does not allow me as i am new user
    • G_M
    • By G_M 16th May 18, 11:33 PM
    • 44,096 Posts
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    G_M
    • #7
    • 16th May 18, 11:33 PM
    • #7
    • 16th May 18, 11:33 PM
    not sure how to add contract link to the post, tried to post a url link to flickr but it does not allow me as i am new user
    Originally posted by Anaida9999
    Read the contract.

    Find the sections, clauses etc relating to

    * fees chargeable in relation to a sale

    * fees chargeable if you withdraw from the contract early

    If you do not understand those clauses, type them here for us to read.
    • davidmcn
    • By davidmcn 17th May 18, 8:31 AM
    • 7,663 Posts
    • 7,800 Thanks
    davidmcn
    • #8
    • 17th May 18, 8:31 AM
    • #8
    • 17th May 18, 8:31 AM
    not sure how to add contract link to the post, tried to post a url link to flickr but it does not allow me as i am new user
    Originally posted by Anaida9999
    Just make it not look like a link - add some spaces or similar.
    • Anaida9999
    • By Anaida9999 17th May 18, 7:47 PM
    • 29 Posts
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    Anaida9999
    • #9
    • 17th May 18, 7:47 PM
    • #9
    • 17th May 18, 7:47 PM
    /photos/159926310@N03/albums/72157695169223871
    • Anaida9999
    • By Anaida9999 17th May 18, 7:48 PM
    • 29 Posts
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    Anaida9999
    ok the link is at the flick website and then add the rest of the URL above to it pls
    I have been sent a bill for 10k which I think is outrageous was expecting only for marketing costs etc

    Also I have challenged the estate agent on why he thinks he deserves a performance fee anyway as my contract said i wanted a sale at 135k and performance fee is calculated when I get a sale above this amount (well thats the way I read it and the offer i got was 127k)
    Last edited by Anaida9999; 17-05-2018 at 7:58 PM.
    • davidmcn
    • By davidmcn 17th May 18, 8:05 PM
    • 7,663 Posts
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    davidmcn
    https://www.flickr.com/photos/159926310@N03/albums/72157695169223871


    though at first glance I think you've obliterated too much from the first page for us to make sense of it - where is the required selling price defined?
    • Anaida9999
    • By Anaida9999 17th May 18, 8:25 PM
    • 29 Posts
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    Anaida9999
    Hi

    have added the first page again with the required/desired asking price , the contract as printed does have some of the left bits missing but thats just the way they printed it

    Thanks in advance for the advice.
    Last edited by Anaida9999; 17-05-2018 at 9:57 PM.
    • Anaida9999
    • By Anaida9999 17th May 18, 10:55 PM
    • 29 Posts
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    Anaida9999
    Hi does anyone have any advice on this?
    • eddddy
    • By eddddy 17th May 18, 11:34 PM
    • 6,335 Posts
    • 6,190 Thanks
    eddddy
    Having briefly looked at the (very amateur) contract, to me, it looks like this...
    • Your desired price was £135k
    • The agent got an offer of £137k

    (So the Performance fee and other fees kick in. The contract says you should have received an email with details of how the Performance fee is calculated. Your comments about £127k net aren't really relevant.)
    • You want to withdraw from the sale - so you have to pay full fees (as explained in the clause titled 'Abortive Fees')

    It's a very bad contract, but you seem to have agreed to it. Your best bet might be to go with the buyer who's offered £137k.
    • Anaida9999
    • By Anaida9999 18th May 18, 12:13 AM
    • 29 Posts
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    Anaida9999
    Thanks eddddy. The EA has not sent me any performance fee calculation yet but cannot it not be argued his fee is unreasonable and he is essentially ripping me off. That around 7pc fee compared to average 3pc here with other agents. I mean in theory without telling anyone beforehand about the fee calculation it could be anything like 50pc even. Wonder what a judge would think of that?

    Can i not also go back and say i dont want to cancel contract but i am not happy with the offer and just wait out term of contract??
    • Anaida9999
    • By Anaida9999 18th May 18, 6:38 AM
    • 29 Posts
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    Anaida9999
    Plus the EA kept saying the performance fee is paid by the buyer not me during a sale in emails i have. But clearly it is not the fee is being taken out of the sale price
    • RedFraggle
    • By RedFraggle 18th May 18, 6:57 AM
    • 658 Posts
    • 1,783 Thanks
    RedFraggle
    Thanks eddddy. The EA has not sent me any performance fee calculation yet but cannot it not be argued his fee is unreasonable and he is essentially ripping me off. That around 7pc fee compared to average 3pc here with other agents. I mean in theory without telling anyone beforehand about the fee calculation it could be anything like 50pc even. Wonder what a judge would think of that?

    Can i not also go back and say i dont want to cancel contract but i am not happy with the offer and just wait out term of contract??
    Originally posted by Anaida9999
    Sadly that argument should have been had before you signed it. The performance fee is paid by the buyer because it comes out of the difference between what you said you wanted and the offer accepted which means it's additional money you no longer get.
    I think you're going to have to suck it up.
    Officially in a clique of idiots
    • Lioness Twinkletoes
    • By Lioness Twinkletoes 18th May 18, 7:07 AM
    • 1,285 Posts
    • 4,600 Thanks
    Lioness Twinkletoes
    Thanks eddddy. The EA has not sent me any performance fee calculation yet but cannot it not be argued his fee is unreasonable and he is essentially ripping me off. That around 7pc fee compared to average 3pc here with other agents. I mean in theory without telling anyone beforehand about the fee calculation it could be anything like 50pc even. Wonder what a judge would think of that?
    Originally posted by Anaida9999

    A judge would simply state that you signed the contract and agreed the terms and conditions.



    The time for righteous indignation is before you sign - not after.
    • Anaida9999
    • By Anaida9999 18th May 18, 8:01 AM
    • 29 Posts
    • 0 Thanks
    Anaida9999
    but is the not such a thing as fairness in the contract , also I did not receive any details of the fee structure as per the email. Guess that does not help?


    Fair would be charging me the marketing/advertising costs , reading the govts unfair contracts website charging me 10k sound excessive


    maybe I should take their offer as advertsing with another EA they might just get me 135k and then with sols costs (as this agent is 'free sols' and a potential fee of 2.5k elsewhere its a couple of k difference anyway
    Last edited by Anaida9999; 18-05-2018 at 8:27 AM.
    • Anaida9999
    • By Anaida9999 18th May 18, 9:16 AM
    • 29 Posts
    • 0 Thanks
    Anaida9999
    this was one of the emails he sent me saying agreed selling price of 127k, but I never agreed to that price


    Subject: Performance&!!!8482; sales agreement no. 003638
    Everything is moving along well. Lender survey carried out last week. Performance&!!!8482; formally agreed. We don!!!8217;t forsee any issues.
    Following on from our recent communication I am pleased to finalise this sale subject to contract. Your required selling price of £127,000.00 has been achieved and our client is fully committed.
    As per your contract of sale, the transaction will attract a Performance&!!!8482; related fee over the agreed price to the purchaser. The bolt on product fee on this occasion is £10,000.00 inclusive of VAT.
    Therefore, making the final price £137,000.00.
    For complete transparency please take note of our selling fees on this proposal and the amount coming to you after all professional fees:
    1. Professional Sales Fee: FREE OF CHARGE
    2. #More Marketing©: FREE OF CHARGE
    3. Buyer Performance Fee: £10,000.00 inc VAT
    4. Free solicitors (Avery Knights) because it!!!8217;s on our Performance&!!!8482; channel
    Total due to Love Your Postcode Group Ltd from yourself will be £10,000.00 at completion.
    This will leave you with the agreed net amount of £127,000.00.
    Your approximate time for exchange will be six weeks. Should you withdraw from the sale for whatever reason our full fee will become due.
    Finally, may I thank you in advance for your continued business with our group. I will personally over look all aspects of the next stage myself and will report into yourself on a timely basis.
    By responding back to this email you are accepting the above incorporated terms and conditions of business and instructing to accept the offer on your behalf. The property will be removed from the open market and the purchaser/s will instruct their advisors.




    plus the contract seems to say that the performance fee is any amount over the asking price so even my selling price is 135k and they are selling for 137k then that's a 2k performance fee as far as common sense dictates
    Last edited by Anaida9999; 18-05-2018 at 10:50 AM.
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